Hong Kong's stablecoin issuer supervision system takes effect, vigilant against false licensing fraud

The Hong Kong Monetary Authority has officially issued a safety alert to be vigilant against false stablecoin licensing fraud. The Hong Kong Stablecoin Ordinance has come into effect, and the regulatory regime for stable issuers has also been implemented simultaneously. The regulatory regime is still in its infancy, and the regulatory philosophy will adopt a "strict first, steady" approach. With the regulatory regime coming into effect, market participants should exercise caution when communicating with the public and avoid making statements that cause misunderstanding or create unrealistic expectations. According to the Stablecoin Ordinance, it is illegal to falsely claim to be a licensee or applicant. As of today, the HKMA has not issued any stablecoin issuer license. The public should beware of any stablecoin or stablecoin issuer claiming to be regulated or licensed in Hong Kong. After issuing the license, the HKMA will upload the list of licensed stablecoin issuers to the HKMA's official website in the future.